Monthly Archives: January 2023

Pantera Capital Predicts a DeFi Future in 2023 Crypto Market Outlook

• Pantera Capital, a crypto-focused venture capital firm, released their 2023 forecast, predicting a future of decentralized finance (DeFi).
• This follows headline-grabbing exploits and bankruptcies, such as the implosion of multibillion-dollar centralized exchange FTX and last week’s filing by crypto lender Genesis.
• Pantera’s CEO, Dan Morehead, believes that blockchain will survive these issues and will eventually replace the world’s financial rails.

As the crypto space continues to grow, venture capital firm Pantera Capital has released its 2023 crypto market outlook, predicting a future of decentralized finance (DeFi). With about $3.8 billion in assets under management, Pantera is a major player in the crypto world, and their forecast provides valuable insight into the future of the industry.

This 2023 forecast follows a bear market that emerged early last year, worsened by a wave of headline-grabbing exploits and bankruptcies. For example, the implosion of multibillion-dollar centralized exchange FTX and last week’s filing by crypto lender Genesis, a sister company of CoinDesk’s, were particularly damaging to the crypto space.

However, Pantera CEO and co-Chief Investment Officer Dan Morehead is confident that blockchain technology will survive these issues and will eventually replace the world’s financial rails. In the forward of his investor letter, titled “The Year Ahead,” Morehead noted that Pantera has managed blockchain funds through three previous “crypto winters,” and each of them featured “supposedly catastrophic events.”

Morehead argued that blockchain is going to “change the world,” and that it will continue to do so despite challenges. He believes that smart contracts on blockchain-based systems will eventually become the norm for financial rails, and that the real questions are how we get there.

Pantera’s 2023 crypto market outlook is an optimistic one, and the company is focused on transaction fees, liquidity, and usability. With the growing popularity of DeFi and the continued development of blockchain-based systems, Pantera is confident that the future is bright for the crypto space.

MakerDAO Approves $100M USDC Deployment on Yearn Finance for 2% Yield

• MakerDAO has approved the deployment of $100M USDC stablecoin on the DeFi protocol Yearn Finance, which is expected to earn an estimated 2% annual yield.
• Maker will open an individual non-custodial vault on Yearn with a ceiling set at $100 million to deposit USDC from its “Peg Stability Module.”
• 72% of MakerDAO voters supported the proposal, which will now go into final implementation and the transfer of funds from the PSM.

The MakerDAO community has approved the deployment of $100 million worth of USD coin (USDC) on the DeFi protocol Yearn Finance. The decision comes with the promise of a potential 2% annual yield on the stablecoin deposits.

The proposal to open a USDC vault on Yearn Finance was submitted at the end of November, and was approved on Monday with 72% of MakerDAO voters in favor. For final implementation and the transfer of funds from the PSM, a “executive vote” from Maker Governance is still required.

The funds will come from Maker’s “Peg Stability Module” (PSM), a reserve used to back the value of Maker’s decentralized stablecoin DAI. Maker will open an individual non-custodial vault on Yearn with a ceiling set at $100 million to deposit USDC from the PSM.

With this new strategy, MakerDAO is expected to earn an estimated 2% annual yield on USDC stablecoin deposits. The funds will be deployed in Yearn’s “bespoke on-chain vault,” a platform designed to maximize yield on deposits while providing a secure and liquid experience.

The deployment of USDC is part of MakerDAO’s ongoing effort to maximize the potential of DeFi protocols. This latest move will further cement Maker’s position as one of the leading DeFi projects, and is sure to attract further institutional investment.

The deployment of USDC on Yearn Finance is a major step forward for MakerDAO and the decentralized finance (DeFi) ecosystem as a whole. It is a clear sign that Maker is committed to finding innovative ways to maximize returns for its users, and will likely lead to further growth in the DeFi space.